Uncertainty Surrounds 777 Partners' Takeover of Everton FC as Premier League Approval Lingers

Introduction

777 Partners, the American investment firm, is uncertain about the timeline for their takeover of Everton Football Club. Hopes of completing the deal by the end of February were dashed by the Premier League, which requires further information before approving the ownership transfer. This delay has left the completion of the deal in question.

Approval Process

777 Partners' buyout from current owner Farhad Moshiri was approved by the Financial Conduct Authority in December, and the Football Association has also given their assent. However, the Premier League has raised additional questions that need to be addressed before granting approval. The owners' and directors' test is yet to be passed.

Timeline and Loan

In September, 777 signed a deal with Moshiri to acquire his 94.1 percent shareholding in Everton, with the aim of completing the deal by Christmas. However, the Premier League's decision on the takeover has been delayed. In the meantime, 777 has provided a loan to Everton for the construction of their new stadium at Bramley-Moore Dock.

Scrutiny and Challenges

777 Partners' multi-club model, which includes stakes in clubs like Genoa, Hertha Berlin, Standard Liege, and Vasco da Gama, has faced scrutiny due to issues at some of their other portfolio clubs. Vasco da Gama and Standard Liege were given transfer bans for failing to make payments. Additionally, 777 Re, a subsidiary company of 777 Partners, had its credit rating downgraded by AM Best due to a weak balance sheet.

Everton's Penalties

This week, Everton expects to hear the result of their appeal against a 10-point penalty for breaching Profitability and Sustainability Rules. However, they also face a second independent commission for breaching Financial Fair Play rules, and the scale of the apparent breach is yet to be determined by the Premier League.

Conclusion

The completion of 777 Partners' takeover of Everton Football Club remains uncertain as they await approval from the Premier League. The timeline for the deal is unclear, and additional questions raised by the league have further delayed the process. Everton's financial penalties and the scrutiny surrounding 777 Partners' other portfolio clubs add to the challenges faced by both parties. As the situation unfolds, Everton and 777 Partners will need to navigate these obstacles to bring the takeover to a successful conclusion.